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Has highway construction narrowed the urban–rural income gap? Evidence from Chinese cities

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  • Zhenxiong Huang
  • Hangtian Xu
  • Jianming Li
  • Nengsheng Luo

Abstract

Using 2003–2016 panel data of 278 prefecture‐level Chinese cities, we analysed the relationship between highway construction, resource flow, and urban–rural income gap using multiple spatial econometric models. Overall highway construction has narrowed the urban–rural income gap owing to better population mobility and goods flow. However, while goods flow has narrowed the gap, population mobility has aggravated it. A regional difference in the impact of highway construction also exists, that is, the effect is negative in central and western cities, but positive for eastern cities. Moreover, China's “4 trillion” fiscal and currency stimulus plan has strengthened highway construction in narrowing the income gap. Se utilizan datos de panel de 2003 a 2016 de 278 ciudades chinas a nivel de prefectura para analizar la relación entre la construcción de carreteras, el flujo de recursos y la brecha urbana‐rural de los ingresos mediante múltiples modelos econométricos espaciales. La construcción de carreteras ha reducido en general la brecha de ingresos entre las zonas urbanas y rurales gracias a una mejor movilidad de la población y al flujo de mercancías. Sin embargo, si bien el flujo de mercancías ha reducido la brecha, la movilidad de la población la ha agravado. También existen diferencias regionales en el impacto de la construcción de carreteras, siendo el efecto negativo en las ciudades centrales y occidentales, pero positivo para las ciudades orientales. Además, el plan de estímulo fiscal y monetario de China de “4 billones” ha fortalecido la construcción de carreteras para reducir la brecha de ingresos. 本稿では、2003~2016年の中国の278の県レベルの都市のパネルデータを用いて、複数の空間計量経済モデルにより、高速道路建設、リソースのフロー、都市部と農村部の所得格差の関連性を分析する。人口の移動可能性と物資の流動が改善されることにより、高速道路の建設は、概して、都市部と農村部の所得格差を縮小させている。しかし、物資流動が格差を縮小させる一方で、人口の移動は格差を拡大させている。高速道路建設の影響には地域差が存在しており、すなわち内陸部及び西部の都市には負の影響があり、東部の都市には正の影響がある。さらに、中国の「4兆元」の財政・流通刺激政策は、高速道路建設による所得格差の縮小を強化している。

Suggested Citation

  • Zhenxiong Huang & Hangtian Xu & Jianming Li & Nengsheng Luo, 2020. "Has highway construction narrowed the urban–rural income gap? Evidence from Chinese cities," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 705-723, June.
  • Handle: RePEc:bla:presci:v:99:y:2020:i:3:p:705-723
    DOI: 10.1111/pirs.12504
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    2. Ping Zhang & Weiwei Li & Kaixu Zhao & Sidong Zhao, 2021. "Spatial Pattern and Driving Mechanism of Urban–Rural Income Gap in Gansu Province of China," Land, MDPI, vol. 10(10), pages 1-29, September.
    3. Lili Li & Yiwu Zeng & Zi Ye & Hongdong Guo, 2021. "E‐commerce development and urban‐rural income gap: Evidence from Zhejiang Province, China," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 475-494, April.
    4. Lu, Haiyan & Zhao, Pengjun & Hu, Haoyu & Zeng, Liangen & Wu, Kai Sheng & Lv, Di, 2022. "Transport infrastructure and urban-rural income disparity: A municipal-level analysis in China," Journal of Transport Geography, Elsevier, vol. 99(C).
    5. Yanyan Gao & Xinping Wang, 2023. "Chinese agriculture in the age of high‐speed rail: Effects on agricultural value added and food output," Agribusiness, John Wiley & Sons, Ltd., vol. 39(2), pages 387-405, March.
    6. Jiangteng Zhou, 2023. "The impacts of highways on firm size distribution: Evidence from China," Growth and Change, Wiley Blackwell, vol. 54(2), pages 482-506, June.
    7. Yun Chen & Zeyang Lei & Chongsen Ma, 2022. "Research on the Evolution of the Competition Culture of Highway Construction Companies Based on Text Mining," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    8. Tang, Jianjun & Gong, Jiaowei & Ma, Wanglin & Rahut, Dil Bahadur, 2022. "Narrowing urban–rural income gap in China: The role of the targeted poverty alleviation program," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 74-90.
    9. Qiuyang Zhou & Zhenqiang Li, 2021. "The impact of industrial structure upgrades on the urban–rural income gap: An empirical study based on China's provincial panel data," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1761-1782, September.
    10. Jin, Mengjie & Shi, Wenming & Liu, Yu & Xu, Xiaoling & Li, Kevin X., 2022. "Heterogeneous impact of high speed railway on income distribution: A case study in China," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).

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